Employee Stock Ownership Plan And Enterprise Performance

Employee stock ownership plan refers to an incentive system for employees to obtain relevant benefits by holding shares of their own companies.It originated in the United States and is an important way to motivate employees.In the 1980 s,Chinese companies began to implement employee stock ownership plans.In June 2014,the CSRC issued the ?Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans for Listed Companies? and other relevant documents to clearly define the specific details of the implementation of the Employee Stock Ownership Plan.As of 2018,hundreds of companies have announced the implementation of employee stock ownership plans.However,the impact of the implementation of the employee stock ownership plan on corporate performance has not yet reached a consensus conclusion.Therefore,how to accurately evaluate the impact of employee stock ownership plans on enterprises is of great significance both in theory and in practice.After reviewing the development status of the employee stock ownership plan and related theories,this paper first explores the impact of the shareholding plan on corporate performance through empirical analysis.By using the propensity score matching method to study the data of China's listed companies,the average treatment effect on the treated of the employee stock ownership plan is calculated after the matching is completed,and we can study how the employee stock ownership plan affects listed companies.After that,this paper selects listed company Longking Environmental Protection as the research object,and explores the impact of employee stock ownership plan on the company from the perspective of case analysis.Longking Environmental Protection has successfully implemented multi-phase employee stock ownership plans.This paper studies this enterprise from two aspects: short-term performance and long-term performance.In terms of short-term performance,the main concern is the stock market.The event research method is used to calculate the abnormal return before and after the publication date of the employee stock ownership plan.In terms of long-term performance,the financial data of enterprises are compared and analyzed.After inquiry,the paper draws the following conclusions: From the perspective of empirical analysis,this paper calculates the average treatment effect on the treated of employee stock ownership plan by propensity score matching method and passes the significance test.From this,it can be concluded that the implementation of the employee stock ownership plan can have a positive impact on the performa nce of listed companies.In terms of case analysis,employee stock ownership plan draft of Longking Environmental Protection has abnormal return around the release date,and the overall performance of financial data is better than other companies in the industry.This shows that the implementation of the employee stock ownership plan can improve corporate performance.